orrison Knudsen SGT, LLC; Confirmatory Order, 64 Fed. Reg. 53750 (Oct. 4, 1999)
[Federal Register: October 4, 1999 (Volume 64, Number 191)]
[Notices]
[Page 53750-53752]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04oc99-83]
=======================================================================
-----------------------------------------------------------------------
NUCLEAR REGULATORY COMMISSION
[EA 98-081]
orrison Knudsen SGT, LLC; Confirmatory Order (Effective
Immediately)
I
Morrison Knudsen (MK) is a construction engineering firm with
operation at multiple reactor and nuclear materials facilities
regulated by the U.S. Nuclear Regulatory Commission (NRC or
Commission). MK headquarters is located in Cleveland, Ohio. SGT, LLC
(SGT) is an affiliate of MK involved in the steam generator replacement
projects for MK.
II
On March 13, 1997, the NRC Office of Investigations (OI) initiated
an investigation to determine if a former Corporate Group Welding
Engineer (GWE) for MK had been discriminated against for raising safety
concerns. In its report issued on February 6, 1998 (OI Case No. 3-97-
013), OI concluded that there was sufficient evidence to substantiate
that discrimination occurred. Specifically, OI concluded that the GWE's
identification of deficiencies in welding procedures by MK and SGT
employees at the Point Beach Nuclear Plant was at least a contributing
factor in MK's decision to remove him from his position as MK Corporate
GWE on January 15, 1997. In addition, in a decision issued on October
28, 1997, a Department of Labor (DOL) Administrative Law Judge (ALJ),
in DOL Case No. 97-ERA-34, determined that the removal of the GWE was
in retaliation for his engaging in protected activity. Subsequently, on
ay 21, 1998, the ALJ approved a settlement agreement between the GWE
and MK.
On January 27, 1999, a predecisional enforcement conference was
held between MK and the NRC staff to discuss the apparent violation of
the NRC's employee protection requirements (10 CFR 50.7). MK retained
the services of a law firm to perform an independent investigation. MK
submitted the report of this investigation and additional materials to
the NRC for review in support of its position that the removal of the
GWE was based upon legitimate performance considerations and not upon
the GWE having engaged in protected activity. While MK and SGT
<SUP>1</SUP> do not agree that a violation of the Energy Reorganization
Act, as amended, or the Commission's regulations occurred, in response
to the DOL and OI findings, MK and SGT have agreed to take the actions
as described in Section V of this Order.
---------------------------------------------------------------------------
\1\ Both MK and SGT employees were involved in the alleged
discrimination against the MK Corporate Group Welding Engineer.
---------------------------------------------------------------------------
III
MK, and its affiliate SGT, have agreed to take certain actions to
assess the work environment at their corporate headquarters and
temporary nuclear reactor and materials job sites. Specifically, MK and
SGT have committed to conduct a comprehensive cultural assessment to be
performed by an independent consultant and to utilize the results of
such an assessment to improve their employee concerns program and to
implement a mandatory continuing training program for all supervisors
and managers. The training program will have the objectives of
reinforcing the importance of maintaining a safety conscious work
environment and of assisting managers and supervisors in responding to
employees who raise safety concerns in the workplace. MK and SGT agreed
to include in such training the requirements of 10 CFR 50.7, including,
but not limited to, the definition of protected activity and
discrimination, and appropriate responses to the raising of safety
concerns by employees. MK and SGT also agreed that such training will
be conducted by an independent trainer with expertise in employee
concerns programs and employee protection requirements in the nuclear
industry.
In addition, MK and SGT also have committed to taking the following
corrective action to ensure that employees feel free to raise safety
concerns without fear of retaliation: (1) posting this Confirmatory
Order and the employee protection requirements of Section 211 of the
Energy Reorganization Act, as amended, and NRC Form 3, at all MK and
SGT temporary nuclear reactor and materials job sites and at the MK
corporate headquarters in Cleveland, Ohio; (2) implementing the
recommendations of the independent third party assessment
[[Page 53751]]
to improve the MK and SGT employee concerns program; (3) conducting
periodic updates of an employee cultural survey developed by an
independent contractor to ensure that MK and SGT employees feel free to
raise safety concerns without fear of retaliation; and (4) expanding
the current MK and SGT exit surveys to include safety conscious work
environment issues and to conduct exit surveys of their permanent and
contract employees to ensure that such employees feel free to raise
safety concerns while employed by MK or SGT.
IV
Since MK and SGT have committed to taking comprehensive corrective
actions as set forth below, and since MK and SGT have committed to
monitor the work environment and to promote an atmosphere conducive to
the raising of safety concerns by employees without fear of retaliation
by implementing this Confirmatory Order, the NRC staff has determined
that its concerns regarding employee protection at MK corporate
headquarters and at MK and SGT temporary nuclear reactor and materials
job sites can be resolved through NRC's confirmation of MK and SGT
commitments as outlined in this Order. Accordingly, the staff is
exercising its enforcement discretion pursuant to Section VII.B.6 of
the NRC Enforcement Policy and will not issue a Notice of Violation or
a civil penalty in this case.
By letter dated July 9, 1999, MK and SGT consented to issuance of
this Order with the commitments described in Section V below. By letter
dated August 9, 1999, MK and SGT waived any right to a hearing on this
Order. MK and SGT further consented to the immediate effectiveness of
this Order.
I find that MK and SGT's commitments, as set forth in Section V
below, are acceptable and necessary and conclude that with these
commitments, the public health and safety are reasonably assured. In
view of the foregoing, I have determined that public health and safety
require that these commitments be confirmed by this Order. Based on the
above, and MK and SGT's consent, this Order is immediately effective
upon issuance.
V
Accordingly, pursuant to sections 103, 161b, 161i, 161o, 182 and
186 of the Atomic Energy Act of 1954, as amended, and the Commission's
regulations in 10 CFR 2.202 and 10 C.F.R Part 50, It is hereby ordered,
effective immediately, that:
1. MK and SGT shall hire an independent consultant to conduct
audits, to review the MK and SGT Employees Concerns Program (ECP), and
to conduct training for MK and SGT supervisors and managers as
discussed below in Condition <SUP><greek-i></SUP>2 of this Order. MK
and SGT will hire this independent consultant, with experience in ECPs,
to also conduct an independent evaluation of MK's and SGT's ECP to be
completed by March, 2000. MK and SGT shall inform the NRC by November
1, 1999, as to the identity of its independent consultant. MK and SGT
shall either implement the recommendations outlined by the consultant
to ensure a safety conscious work environment exists at MK and SGT
corporate and temporary nuclear reactor and materials job sites or
explain to the NRC why it cannot implement such recommendations
outlined by the consultant. MK and SGT shall provide the report of
recommendations of their independent consultant by March, 2000 to the
NRC Branch Chief, Quality Assurance, Vendor Inspection, Maintenance and
Allegations Branch, Office of Nuclear Reactor Regulation at U.S. NRC,
ailstop O-9A1, Washington DC 20555.
2. MK and SGT will conduct mandatory continuing training programs
on an annual basis beginning in the calendar year 2000 for all MK and
SGT supervisors and managers at their corporate and temporary nuclear
reactor and materials job sites. All temporary craft and permanent MK
and SGT employees shall receive initial employee protection training as
part of their access program or orientation when they begin work at an
K or SGT job site. The independent consultant, as outlined in
Condition <SUP><greek-i></SUP>1 of this Order, will approve this
training. The training program for supervisors and managers should be
conducted by an independent trainer as approved by the independent
consultant, if the consultant does not conduct such training, and
include:
(A) Annual training on the requirements of 10 CFR 50.7, or similar
regulations, through at least calendar year 2002, including, but not
limited to, what constitutes protected activity and what constitutes
discrimination, and appropriate responses to the raising of safety
concerns by employees. Such training shall stress the freedom of
employees in the nuclear industry to raise safety concerns without fear
of retaliation by their supervisors or managers.
(B) Scheduled training on building positive relationships and
conflict resolution. The training program will have the objective of
reinforcing the importance of maintaining a safety conscious work
environment and assisting managers and supervisors in dealing with
conflicts in the work place in the context of a safety conscious work
environment at MK and SGT and at their temporary nuclear reactor and
materials job sites.
3. MK and SGT will integrate, into their overall program for
enhancing the work environment and safety culture at their corporate
headquarters and their temporary nuclear reactor and materials job
sites, a cultural assessment survey (i.e. questionnaire) developed by
the independent consultant. The time frame for integration of cultural
assessments into the ECP shall be submitted, to the NRC Branch Chief
mentioned in Condition <SUP><greek-i></SUP>1 of this Order, by the MK
and SGT independent consultant. MK and SGT agree to conduct at least
three additional annual assessments. These audits should be geared
toward ensuring that employees are aware of the provisions of 10 CFR
50.7, or similar regulations, are willing to come forward and report
safety concerns when appropriate, and know how to implement the ECP
(e.g. that the existence of the safety concerns hotline is well known
to all employees). MK and SGT also agree to conduct audits at their
temporary nuclear reactor and materials job sites soon after the
initial staffing of the sites and periodically afterwards as warranted.
Lastly, MK and SGT also agree to expand their exit survey to include
safety conscious work environment issues and to conduct exit surveys of
their permanent corporate employees and contract employees so as to
ensure that all employees feel free to raise safety concerns without
fear of retaliation. The questionnaires, audits, surveys, and the
resulting analysis reports of these ECP documents will be submitted to
the NRC for review for a period of three years from the date of this
Order by sending the materials to the NRC contact stated in Condition
<greek-i>1 of this Order. MK and SGT will provide information to the
NRC pertaining to any follow-up actions to address issues raised by the
survey and audit results.
4. Following the issuance of this Confirmatory Order, MK and SGT
will issue and post this Confirmatory Order, Section 211 of the Energy
Reorganization Act, as amended, and NRC Form 3, to inform all of its
employees of this Confirmatory Order, as well as their right to raise
safety concerns to management and to the NRC without fear of
retaliation. These publications shall also be posted at all temporary
nuclear reactor and materials job sites and at the companies' corporate
headquarters.
[[Page 53752]]
The Director, Office of Enforcement may relax or rescind, in
writing, any of the above conditions upon a showing by MK and SGT of
good cause.
VI
Any person adversely affected by this Confirmatory Order, other
than MK or SGT, may request a hearing within 20 days of its issuance.
Where good cause is shown, consideration will be given to extending the
time to request a hearing. A request for extension of time must be made
in writing to the Director, Office of Enforcement, U.S. Nuclear
Regulatory Commission, Washington, DC 20555, and include a statement of
good cause for the extension. Any request for a hearing shall be
submitted to the Secretary, U.S. Nuclear Regulatory Commission, ATTN:
Chief, Rulemaking and Adjudications Staff, Washington, D.C. 20555.
Copies of the hearing request shall also be sent to the Director,
Office of Enforcement, U.S. Nuclear Regulatory Commission, Washington
D.C. 20555, to the Assistant General Counsel for Materials Litigation
and Enforcement at the same address, to the Regional Administrator, NRC
Region III, 801 Warrenville Road, Lisle, IL 60532-4351, and to MK and
SGT. If such a person requests a hearing, that person shall set forth
with particularity the manner in which his interest is adversely
affected by this Order and shall address the criteria set forth in 10
CFR 2.714(d).
If the hearing is requested by a person whose interest is adversely
affected, the Commission will issue an Order designating the time and
place of any hearing. If a hearing is held, the issue to be considered
at such hearing shall be whether this Confirmatory Order shall be
sustained.
In the absence of any request for hearing, or written approval of
an extension of time in which to request a hearing, the provisions
specified in Section V above shall be final 20 days from the date of
this Order without further order or proceeding. If an extension of time
requesting a hearing has been approved, the provisions specified in
Section V shall be final when the extension expires if a hearing
request has not been received. An answer or a request for a hearing
shall not stay the immediate effectiveness of this order.
Dated at Rockville, Maryland this 24th day of September, 1999.
For the U.S. Nuclear Regulatory Commission.
Frank Miraglia,
Deputy Executive Director for Reactor Programs.
[FR Doc. 99-25719 Filed 10-1-99; 8:45 am]
BILLING CODE 7590-01-P